copyright mobile lifestreams ltd 2000 vision on location services cell broadcast as kick- start for...
TRANSCRIPT
Copyright Mobile Lifestreams Ltd 2000
Vision on Location Services
Cell Broadcast as kick-start for Mobile Location
Presenter: Simon Buckingham Founder and CEO Mobile Lifestreams Ltd
Copyright Mobile Lifestreams Ltd 2000
Who is Mobile Lifestreams?
Founded in January 1999 Cash flow funded, no VC Aim: to be a long-term
independent player Global team of 15 people Expanding executive and non-
executive management From publications to consulting
to the “Mobile Data Dot.com”
Copyright Mobile Lifestreams Ltd 2000
Web Strategy
Owner of 500 mobile URLs; B2B and B2C
Currently managing over 50 B2B Websites including MobilePositioning.com, MobileCellB.com
B2C: Ringtones.com, PictureMessaging.com, MobileWAP.com, MobileDataShop.com
Copyright Mobile Lifestreams Ltd 2000
Cell Broadcast
Point to multipoint service that is much more efficient than SMS for same transaction
Broadcast SMS is too slow and variable and does not scale
Lottery, football etc. “concentrated” services need CB not SMS
Copyright Mobile Lifestreams Ltd 2000
Cell Broadcast
Why hasn’t it taken off and what will help it to take off?
Value Chain Analysis Handsets -Applications- Servers-
Networks
Copyright Mobile Lifestreams Ltd 2000
Handsets
Non-standardized (like SMS) Man Machine Interface causes customer service problems
Handset vendors must test MMI in advanced CB markets and improve
Siemens CB phones are best of breed currently- re-read, forward as SMS, set phone to get one more etc.
Copyright Mobile Lifestreams Ltd 2000
User Complexity
Another successful issue is up to 999 channels to select from, including a menu channel
Unless customers knows right channel number, sees nothing
If receives several channels, could become intrusive
Copyright Mobile Lifestreams Ltd 2000
Applications
Advertising (Cell&Sell), not necessarily location sensitive
Traffic and transport Applications enablers such as
Materna Application developers such
as 1-2-snap
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Servers
CMG Comverse Network
Systems Logica Sema
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Networks
30 or so networks have trial or commercial Cell Broadcast Centres installed
Limited bandwidth- maximum 1 CB message every 2 seconds is total capacity of CB channel- limits number of applications that can be run over CB channel
Copyright Mobile Lifestreams Ltd 2000
Networks
What is value of limited bandwidth- how much can/ should networks charge for access to valuable and limited CB channel?
Nobody has set a tariff for CB unlike 15 US c for SMS that became widespread
Copyright Mobile Lifestreams Ltd 2000
Revenue Streams
1. Triggers for other call types- premium rate voice, SMS etc.
2. Advertising- indirect revenues from merchants
3. Subscription services- recently enabled by SIM Toolkit- can now stop everyone from viewing- send decryption key using SIM Toolkit, else illegible
Copyright Mobile Lifestreams Ltd 2000
Existing Operator Challenges
Increase Revenue (and share price) Differentiate their service offering Reduce Churn Stay ahead of the Competition
Location Based services can address all these
challenges!
Copyright Mobile Lifestreams Ltd 2000
What is driving the Market?
Operator drivers (as above) Infrastructure development as
mandated by FCC(June 1996 ruling requiring all mobile network operators o provide location information on all calls to “911” by October 1st 2001)
Terminal advancement / GPS technology
End user paradigm shift
Copyright Mobile Lifestreams Ltd 2000
Current Market Landscape Most operators realise significance
of Mobile Location Services Actual implementations limited
apart from trials and vertical markets
Recent Strategis Group Survey *:- 17% Location based billing- 15% Traffic / Navigation Updates- 11% Roadside Assistance- 9% Location Info Services- 48% have no MLS in place!
*Source: Strategis Group Report: European Wireless Location Based Services - March 2000
Survey of 40 Operators in 12 European Countries
Copyright Mobile Lifestreams Ltd 2000
Mobile Location Value Chain
Fragmented Multiple technology standards Handsets approaches Server approaches Accuracy Standards
Technology is not ready for mass market deployments
Copyright Mobile Lifestreams Ltd 2000
Technical Considerations No single standard for Location
leading to Analysis Paralysis:
- Cell of Origin (COO / Cell ID)- Enhanced Observed Time Difference (E-OTD)- Time of Arrival (TOA)- Global Positioning System (GPS)- Angle of Arrival (AOA)- Signal Attenuation- Intelligent Network Solutions- etc…
Accuracy Network / Handset Implementation?
Copyright Mobile Lifestreams Ltd 2000
Other considerations Privacy Handset availability Roaming 3rd party access to Location
Info Market evolution:
- Accuracy, devices, standards, applications, cost of deployment
Copyright Mobile Lifestreams Ltd 2000
Who is doing what? Mobile Location Services are in
fact alive and well – users just don’t realise (“vocal” location)
Apart “vocal” location majority of Location Services are using Cell IDe.g.:- Location based billing (Libertel, Mannesmann, BT Cellnet, Vodafone UK, Radiolinja etc.)
Copyright Mobile Lifestreams Ltd 2000
Desirable “on the move”
Content of office or home PC Travel information
Timetables and current status
Directions and maps Location-specific
entertainment Hotel guides Restaurant guides Theatre and cinema guides
Copyright Mobile Lifestreams Ltd 2000
Categories of Location Services
SAFETYEmergency servicesRoadside assistance
BILLINGLocation sensitive billingWireless officeResidential useEvent billing
INFORMATIONLifestyle informationEvent informationTraffic information
TRACKINGFleet managementAsset trackingPeople tracking
Copyright Mobile Lifestreams Ltd 2000
Technology Schemes
Technology Scheme Network or Handset based
Advantages Disadvantages
COO (Cell of Origin)
Network No modifications needed to networks or handsets
Relatively low accuracy
E-OTD (Enhanced Offset Time Division)
Network Software modified handsets needed
TOA (Time of Arrival)
Network Uses existing CDMA network features
Relatively low accuracy
GPS
Handset GPS is free to use New handset needed
AOA (Angle of Arrival)
Network Complicated antennae required
IN (Intelligent Network)
Network Location Finding System independent
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Traffic maps on WAP phones
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Device Innovation- the Benefon ESC!
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So what are the opportunities? Location Sensitive Billing Info Services Traffic Info / Congestion
Pricing Tracking
- People (Personal Security)- Products (Courier, Theft, Asset Tracking)- Vehicles (Roadside Assistance / Fleet)
Tolling
Copyright Mobile Lifestreams Ltd 2000
Location Sensitive Billing Most Established Location
Service Price of call based on Location- Home Zone, Shared Zone (e.g. Office), Other Zones (e.g. Airports, Stadiums, Festivals)
Enables Operators to target Wire-line minutes
Often promotes off-peak traffic Applies to both Prepaid and
Postpaid
OPPORTUNITY = HIGH
Copyright Mobile Lifestreams Ltd 2000
Info Services
Already established market (Yellow Pages / Scoot etc..)
Content delivery mechanisms User paradigm shift
increasing awareness and desire (e.g. WAP)
Use Cell ID initially (Service Evolution)
Key factor for success of 3GOPPORTUNITY = HIGH
Copyright Mobile Lifestreams Ltd 2000
Traffic Info/ Congestion Pricing
Some overlap with Info Services but category in own right
Existing Infrastructure can be exploited in some casese.g.: Trafficmaster, existing traffic phone lines
Strong consumer interest Regulatory interest (Congestion /
Tolls)
OPPORTUNITY = HIGH
Copyright Mobile Lifestreams Ltd 2000
Tracking
Huge potential market 3 key categories (people,
products, vehicles) Already several deployments
in Vertical Markets In vehicle integration
OPPORTUNITY = MEDIUM to HIGH
Copyright Mobile Lifestreams Ltd 2000
Revenue Models
Flat Rate- addition to subscription (not suited to Prepaid)
Per Use- Attractive for Prepaid but can be costly to end user
Content- subscription based services depending on content
Copyright Mobile Lifestreams Ltd 2000
Market Opportunity Potential US$15 Billion Market??
“One in five consumers would be likely to subscribe to local phone service from wireless carrier if both charged same price – potential US$15 billion market opportunity” – Source: Business Research Group (BRG)
Potential US$32.9 Billion Market in Europe by 2005?Total market in Europe of $81.9 billion (2003 to 2005) – Source: Strategis
Real Opportunity – difficult to measure – most likely will be incremental revenue gain.
ML predict global market of US$20 Billion per year by 2005.
Copyright Mobile Lifestreams Ltd 2000
CB Technology Evolution
CB is in UMTS release 99
WAP over CB
CB for TDMA/ PDC
Integration with GPRS point to multipoint
Copyright Mobile Lifestreams Ltd 2000
Summary Provides significant opportunity
to operators in terms of differentiation, segmentation and revenue
Three quarters of location applications could be implemented with little investment
Technology fragmentation not conducive to rapid market growth (Standards, APIs etc)
Cell Broadcast value chain has come of age- the time is right
Copyright Mobile Lifestreams Ltd 2000
Contact Us
Simon Buckingham
Mobile Lifestreams
Tel: +44 7000 366366
Fax: +44 7000 366367Email:[email protected]
Web: www.mobileLifestreams.com